"We started off well today with some sleeping koalas, or 'drop bears' as some of you know them," Harry quipped. (Okay, who told him?!)

"We're both absolutely delighted to be here, and really impressed to see you serving beer and tea at an afternoon reception in true Aussie style."

Harry and Meghan meet a 'drop bear'. (AAP)

Perhaps Buckingham Palace could learn a few things from us, after all.

Harry also thanked the Governor General Sir Peter Cosgrove and Lady Cosgrove for allowing them to stay at Admiralty House, joking that he and Meghan had been "inviting all [their] mates" over while in Sydney.

The afternoon reception saw the royal couple meet with Australians from various sectors, including charity, entertainment and sport.